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Best car insurance add-ons for expensive cars in India

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If you are spending a lot of money on getting a high-value car above ₹20 lakhs in India, you need to put equal emphasis on buying exhaustive coverage for it. You should note that the more expensive the car is, the more money it takes to get the necessary repairs and replacements for it. This is why getting essential add-ons on top of the car insurance plan is highly recommended. This page will discuss some of the best add-ons for luxury car insurance plans.

Why do you need insurance for high-value cars?

Your four-wheeler needs to have valid car insurance in India, regardless of its value or brand. Car insurance for all cars has been made compulsory under the Motor Vehicles Act 1988. While you only need a car insurance plan with at least third-party liability cover to comply with this law, shelling out a bit more money to get a comprehensive car insurance plan is widely recommended, especially if you own a high-value car worth more than ₹20 lakhs.

Also, the maintenance cost of high-value cars is high. Even repairs for a minor fender bender on a car worth over ₹20 lakhs can cost a considerable amount of money. This is why getting a vehicle insurance plan that covers own damages of the insured car is highly recommended if car owners want to keep their finances in check.

What are add-ons in car insurance?

Add-ons are insurance components that you can add on top of the base cover, as they are not part of the standard plan. Add-ons are optional and offer specific additional coverage in exchange for a higher premium amount. Insurance companies in India offer add-ons with comprehensive and standalone own damage car insurance plans.

In general, a comprehensive or standalone own damage plan offers coverage for own damages that the vehicle suffers due to perils like accidents, vehicle theft, natural calamities, etc. By adding necessary add-ons, you can enjoy a more tailored coverage for your car and reduce various out-of-pocket expenses that the standard plan simply doesn’t cover. Overall, picking the right add-ons with your car insurance plan can help make your high-value car ownership experience convenient and tension-free.

Best car insurance add-ons to get for high-value cars

The name and coverage of specific add-ons available with car insurance may vary depending on the insurance provider. In general, here are some of the most popular and practical car insurance add-ons to get for high-value cars worth over ₹20 lakhs;

1. Zero depreciation

Zero depreciation, also called bumper-to-bumper, is one of the most popular add-ons for luxury car insurance. Regardless of how expensive your car is, its market value decreases with each passing year. During vehicle insurance claim settlements, the insurer considers this depreciation value, which leads to a smaller payout. However, with zero depreciation cover, the insurer will not remove the depreciation value from the final claim amount, ensuring full payout for the repair and replacement of the damages.

2. Emergency roadside assistance

Getting stuck in the middle of the road with a high-value car can be troublesome. However, if you have the emergency roadside assistance add-on, you can avail of necessary assistance from the insurer in case your car breaks down on the highway. In such scenarios, you can rely on this add-on to offer you fast and quality help with stuff like vehicle towing, flat tyre replacement, battery jumpstart, emergency fuel delivery, medical evacuation, etc.

3. Consumables cover

The standard car insurance in India doesn’t usually cover the cost of consumable items, such as nuts, bolts, AC gas, grease, coolant, etc. Although they may sound like minimal expenses, everything adds up to a considerable amount in the final bill, which the policyholder has to pay. On top of this, consumables for high-value cars above ₹20 lakhs can be more expensive compared to non-luxury four-wheelers. This is why investing in insurance extras for expensive cars, like the consumables add-on cover, comes in clutch. It covers the cost of such consumable items, so you don’t have to bear the expenses from your pocket.

4. Engine protection cover

The engine is the heart of any vehicle, and it can be a major financial blow to replace or repair it in case it gets damaged. In expensive cars, this cost can be as high as buying a brand new vehicle itself. Hence, to protect your wallet from such financial strain, you should invest in the engine protection add-on. It is one of the most premium car insurance riders that covers the cost of repair and replacement of the engine and gearbox components if they get damaged due to water ingress, accident, lubricant leakage, etc. If you own a high-value car in areas prone to floods, clogged drains, heavy rainfall, etc., consider getting this add-on.

5. Return to invoice

The return to invoice is one of the most excellent and premium car insurance riders offered by insurers. If an expensive car like yours gets damaged beyond repair or stolen, it can cause significant financial distress. However, if you have the return to invoice or RTI add-on, you can get a claim value equal to the original invoice amount of the car, or the new invoice amount when the vehicle was purchased or the new invoice amount when the car was stolen or declared irreparable. With such a substantial claim amount, you can easily buy a new car to replace the lost one.

6. Tyre protect cover

Considering the road conditions in India, car tyres wear out pretty quickly. Replacing high-quality tyres of high-value cars can take a huge toll on your wallet. So, it is a wise decision to invest in this car insurance add-on for individuals who own cars worth over ₹20 lakhs in India. This add-on covers the expenses related to replacing tyres and tubes of the insured car. The coverage is offered in case the tyre of the insured car bursts, punctures, bulges or faces a cut during an accident.

Tips for choosing car insurance add-ons for high-value cars

Here are some handy tips you can use when picking add-ons for your high-value cars;

1. Do proper research

of all, ensure that the provider of your car insurance in India offers all the ideal add-ons. If not, consider changing providers so you can get the desired coverage and added protection for your high-value car.

2. Avoid the unnecessary

While the extra coverage offered by each add-on may sound cool, there’s a good chance that you don’t need all of them. The more add-ons you pick, the higher your vehicle insurance premium gets. So, pick only the ones you think are necessary in your case.

3. Understand properly

Before finalising add-ons, make sure you understand what each one exactly offers. It will help you make a more informed decision and utilise the coverage when and as needed.

4. Change during renewals

If you already own a comprehensive or standalone OD car insurance, note that you can add and remove add-ons to the plan as required during renewals. Depending on your coverage needs, you can make these adjustments to ensure maximum protection.

Conclusion:

Owning and maintaining high-value cars is tougher on the wallet as compared to normal, non-luxury vehicles. Even the cost of repairs and replacements for minor accidental damage can be massive. This is why getting car insurance with extensive own damage coverage and including essential add-ons to the plan to enhance its exhaustive protective net is very important, especially for high-value cars.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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